Modest Growth

BASSETERRE, St. Kitts, Jan 29, CMC – Member states of the Organisation of Eastern Caribbean States (OECS) are still grappling with low economic growth, persistent fiscal deficits and rising debt levels, Governor of the Eastern Caribbean Central Bank (ECCB), Sir Dwight Venner, has said.

Delivering the 2013 Economic Review of the sub-regional grouping on Tuesday night, Sir Dwight said it was evident that 2013 had been “another challenging year for the Currency Union” with high unemployment and poverty rates and some fragility in the financial sector.

“Once again the structural characteristics of our countries, namely, small size, extreme openness and high vulnerability to external shocks and natural disasters have become more evident.”

Sir Dwight said that economic and financial developments in the Eastern Caribbean Currency Union (ECCU) continue to be shaped by the global economic environment which is still uncertain, with growth for 2013 likely to be lower than previously anticipated.

He said in the United States, the sub-region’s main trading partner, a major contributor to the slowdown was the fiscal policy stance of the Federal government and the political gridlock which had adverse effects on business and consumer confidence, despite the uptick in the housing market and the easing of credit conditions.

In Europe, uncertainties persisted and unemployment rates remained elevated, while in the emerging economies there was a slowing down in economic activity,” Sir Dwight said.

According to figures released here, preliminary data indicate that economic activity in the ECCU expanded at a modest pace of 0.7per cent in 2013, building on the marginal growth of 0 .2 per cent achieved in 2012, which reversed the negative growth trends experienced since 2009.